CONTENTS
PART 1
Learning Outcomes, Summary Overview, and Problems
CHAPTER 1
The Time Value of Money 3
Learning Outcomes 3
Summary Overview 3
Problems 4
CHAPTER 2
Discounted Cash Flow Applications 7
Learning Outcomes 7
Summary Overview 7
Problems 8
CHAPTER 3
Statistical Concepts andMarket Returns 11
Learning Outcomes 11
Summary Overview 11
Problems 13
CHAPTER 4
Probability Concepts 21
Learning Outcomes 21
Summary Overview 21
Problems 23
CHAPTER 5
Common Probability Distributions 29
Learning Outcomes 29
Summary Overview 30
Problems 31

CHAPTER 6
Sampling and Estimation 37
Learning Outcomes 37
Summary Overview 37
Problems 39
CHAPTER 7
Hypothesis Testing 43
Learning Outcomes 43
Summary Overview 44
Problems 46
CHAPTER 8
Correlation and Regression 53
Learning Outcomes 53
Summary Overview 53
Problems 55
CHAPTER 9
Multiple Regression and Issues in Regression Analysis 67
Learning Outcomes 67
Summary Overview 68
Problems 70
CHAPTER 10
Time-Series Analysis 83
Learning Outcomes 83
Summary Overview 84
Problems 85
CHAPTER 11
Portfolio Concepts 97
Learning Outcomes 97
Summary Overview 98
Problems 102
PART 2
Solutions
CHAPTER 1
The Time Value of Money 111
Solutions 111

CHAPTER 2
Discounted Cash Flow Applications 129
Solutions 129
CHAPTER 3
Statistical Concepts andMarket Returns 135
Solutions 135
CHAPTER 4
Probability Concepts 149
Solutions 149
CHAPTER 5
Common Probability Distributions 155
Solutions 155
CHAPTER 6
Sampling and Estimation 161
Solutions 161
CHAPTER 7
Hypothesis Testing 167
Solutions 167
CHAPTER 8
Correlation and Regression 175
Solutions 175
CHAPTER 9
Multiple Regression and Issues in Regression Analysis 185
Solutions 185
CHAPTER 10
Time-Series Analysis 193
Solutions 193
CHAPTER 11
Portfolio Concepts 199
Solutions 199
About the CFA Program 205